More Xiaomi Corp. shareholders are rushing for the exit.

An undisclosed investor sold 231 million Class B shares at HKUS$9.45 apiece, according to people with knowledge of the matter, a 5.1 per cent discount to Tuesday’s close. The placing follows the end of a six-month lockup last week that has allowed early shareholders to sell Xiaomi stock for the first time. The shares fell 2.6 per cent in Hong Kong Wednesday.

Xiaomi was one of the world’s most hyped initial public offerings in recent years, with bankers initially touting a valuation of as much as US$100 billion. The Chinese smartphone maker’s market capitalization has dropped to about US$30 billion from a high of US$61 billion reached after its 2018 debut -- which, by one measure, was the city’s biggest flop ever.

A flurry of off-exchange block trades last week signaled that many had taken the opportunity to offload the stock. A fund backed by billionaire Yuri Milner -- one of the world’s most prolific startup investors -- also distributed millions of Xiaomi shares to investors, reducing its stake to less than 4.99 per cent. More shares will be unlocked for sale in July following a one-year restriction, while controlling shareholders last week said they’d hold on to their stakes for another year.